Germany industry is now worried about the prospect of a
mass sell-off at bargain basement prices. Hochtief is
likely only the beginning. Many experts believe Germany companies
are facing a wave of takeovers. There is certainly no lack of
attractive targets -- around a dozen of the country's 100 largest
corporations are considered at risk.

These companies have few debts, plenty of cash and are
bringing in good profits, but their value on the stock market is
relatively low. Potential targets, according to
estimates by the German business daily Handelsblatt, include
Infineon, Rheinmetall, MTU Aero Engines, semiconductor
manufacturer Aixtron and biotechnology company Qiagen (see
graphic). These companies don't have major stockholders who could
prevent a takeover and they have a low price-earnings ratio,
meaning that a buyer could recoup the takeover costs within a few
years from dividends.

...

France and Spain illustrate one extreme in terms of handling
foreign takeover bids. Germany represents the other.
Hardly any other country in Europe makes it so easy and
so cheap for foreign corporations to acquire domestic
businesses.

A would-be purchaser such as ACS can buy up Hochtief shares
relatively cheaply. Any party that acquires more than 30 percent
of a German corporation must bid to buy the remaining
stockholders' shares at a minimum of their average value over the
past three months.

Once it has passed the 30 percent hurdle, ACS is no longer
required to make Hochtief stockholders any further bids. Instead,
the Spanish company can continue to acquire blocks of shares at
its leisure, whenever market prices are particularly low, to
eventually secure control over its German competitor.

Maybe they should buy themselves, or get the German public to buy
if the deals are so good.